How to do a corp-to-corp contract with a US job offer

[simonnus]

Hi, I am a canadian citizen. I received a contractor offer from a US company. They said they can do W2 and they can also do corp-to-corp.

I would love to do corp-to-corp. Does that mean I have to incorporate in Delaware? Then after incorporation, how can I get my TN status and TN visa? if I do a corp to corp, does that mean I have to do a job offer from my newly incorporated company for me?

Thanks for your clarification.

 

[nelsona]

You do not have to incorporate, let alone in a particular state. Just be sure to incorporate in the country you will be living. The sponsorship must always be from the US client for you. How you are paid can be spelled out, separately, if needed.

 

[simonnus]

Thanks for your answer. If I have an ontario incorporation, and if a New York company employed me and we do corp to corp.

Do my company have to pay 13% of the HST for the corporation tax? or my company have to pay the 8.875% GST from new york?

You do not have to incorporate, let alone in a particular state. Just be sure to incorporate in the country you will be living. The sponsorship must always be from the US client for you. How you are paid can be spelled out, separately, if needed.

 

[nelsona]

These are tax questions. But if you are going to live in US, incorporate there, otherwise you will be corp taxed in both countries.

 

[anjan42]

Thanks for your answer. If I have an ontario incorporation, and if a New York company employed me and we do corp to corp.

Do my company have to pay 13% of the HST for the corporation tax? or my company have to pay the 8.875% GST from new york?

Not an expert but my understanding is if you do corp-to-corp also called incorporated in Canada then you only need to have a Canadian company. Lets say you live in Ontario so the company needs to be registered federally and in Ontario too just like any other contract work you do in Canada.

The client will pay your corp money but without GST/HST. The reason is the company will ask you to sign W-8BEN form which is part of tax treaty. When you do your annual filling of taxes, it will have nothing related to US and you just file like any Canadian company but will not remit HST. Better talk to accountant to figure this out and be sure to deal with accountant who do cross border taxes.
Also the company will pay you in USD and you need to provide income in CAD to CRA end of the year, some people told me you need to keep a log of exchange rate of everyday they remit the money in USD bank account in Canada.